Structured Credit Investor SCI’s 5th Annual Capital Relief Trades Seminar 17 October 2019, London
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Capital Relief Trades

Capital relief trades are deals put together by banks to sell on to investors to reduce the bank's regulatory capital requirements. Such deals can take many forms, but SCI focuses on those where synthetic or securitisation structures are utilised. Those deals can be broken down into the following broad categories (deals can be combinations of these categories): CDS - credit default swaps: in the capital relief trade context, this denotes deals that utilise such instruments to transfer credit risk. CLN - credit-linked note: in the capital relief trade context, this denotes the deal is structured as a note with an embedded credit derivative. Fin gtee - Financial guarantee: a means of structuring a capital relief trade, whereby the investors benefit from a guarantee that all the issuer's obligations will be met. Funded: where a capital relief trade is understood to have been structured using a credit derivative (CDS, CLN, synthetic CDO etc) with the protection seller making an initial payment. Unfunded: where a capital relief trade is understood to have been structured without an initial payment being made under the credit derivative (CDS, CLN, synthetic CDO etc). True sale: a capital relief trade based on a cash securitisation structure rather than a synthetic securitisation structure.


  • SMEs supported

    Supranationals driving new credit ecosystem

    A new ecosystem is gaining traction in the securitisation market, with supranational institutions st...

    News Analysis    16 August 2018
  • SCI Start the Week - 13 August

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline remained subdued last week, albeit a good mix of asset classes were represent...

    News    13 August 2018
  • Risk transfer round-up - 10 August

    CRT sector developments and deal news

    Banco Comercial Portugues is believed to be prepping a significant risk transfer deal for 4Q18. Acco...

    News    10 August 2018
  • Second Magdalena deal priced

    Santander SME portfolio attracts further investor interest

    Santander has completed its second FT Pymes Magdalena risk transfer transaction. The €166.3...

    News    8 August 2018
  • Retention questioned

    Call for NPL regulatory differentiation

    Questions are emerging over the relevance of risk retention in the context of European non-performin...

    News Analysis    7 August 2018
  • CRT resilience highlighted

    Investors undeterred by turn in credit cycle

    Widening credit spreads and an expected turn in the credit cycle have not induced significant change...

    News Analysis    6 August 2018
  • SCI Start the Week - 6 August

    A look at the major activity in structured finance over the past seven days

    Pipeline The pipeline was once again dominated by ABS deals last week. A handful of CMBS and RMBS w...

    News    6 August 2018
  • Risk transfer round-up - 27 July

    CRT sector developments and deal news.

    Mitsubishi UFJ is rumoured to be prepping its first transaction referencing European loans. The bila...

    News    26 July 2018
  • SCI Start the Week - 16 July

    A look at the major activity in structured finance over the past seven days

    Pipeline Marketing of new securitisations continued to gain momentum last week, following the Indep...

    News    16 July 2018
  • Return to form?

    More traditional synthetic CRE deals emerging

    A number of issuers are working on CRE capital relief trades, including some UK banks that issued CR...

    News Analysis    13 July 2018
  • Risk transfer round-up - 6 July

    The Cayman Islands stock exchange has released a late June document regarding an early redemption of...

    News    6 July 2018
  • Barclays engineers comeback

    Further impetus added to Colonnade programme

    Barclays has returned to the risk transfer market with Colonnade Global 2018-1, a £34.2m c...

    News    2 July 2018
  • Trade finance CRTs gather pace

    Transactions offer multiple benefits to issuers and investors

    Interest is growing in synthetic securitisations backed by trade finance receivables - collateral th...

    News Analysis    28 June 2018
  • SCI Start the Week - 25 June

    A look at the major activity in structured finance over the past seven days

    Pipeline The securitisations remaining in the pipeline at the end of last week were fairly evenly s...

    News    25 June 2018
  • PRA's tough stance continues

    Banks have been reviewing the PRA’s significant risk transfer (SRT) consultation, which pr...

    News Analysis    22 June 2018
  • Mortgage SRT booster voted down

    MEP Caroline Nagtegaal’s amendment 596 to Article 234 of the CRR was rejected by the Europ...

    News Analysis    22 June 2018
  • Risk transfer round-up - 22 June

    Intesa Sanpaolo is rumoured to be prepping a capital relief trade referencing corporate assets, with...

    News    22 June 2018
  • Capital computation

    The complexity involved in executing capital relief trades is driving increased focus on the operati...

    News Analysis    18 June 2018
  • SCI Start the Week - 18 June

    A look at the major activity in structured finance over the past seven days

    Pipeline A mixed bag of securitisations remained in the pipeline at the end of last week. ABS once...

    News    18 June 2018
  • IFRS 9 benefit welcomed

    The first-time adoption of IFRS 9 has had a muted impact on bank capital ratios and this has been re...

    News Analysis    15 June 2018
  • Risk transfer round-up - 15 June

    Deutsche Bank is expected to execute two capital relief trades this month. One is a corporate deal f...

    News    15 June 2018